Diageo (DEO) Cuts Outlook on Weak U.S. Alcohol Demand

Diageo plc (NYSE:DEO) ranks among the oversold European stocks to buy. On March 3, TD Cowen maintained its Hold rating on Diageo plc (NYSE:DEO) but reduced its price target to $88. TD Cowen reduced its organic operating profit growth estimate to flat and its organic sales forecast to -2.7% for the fiscal year 2026.

Morgan Stanley Cuts Target on Diageo (DEO) as Growth Pressures Persist

Diageo plc (NYSE:DEO) announced a cut in its annual sales projection and dividend, citing sluggish demand in the US market. The company reported a significant fall in U.S. alcohol sales for the six months ended December 31, mostly affecting its famous tequila brands Don Julio and Casamigos.

Moreover, Diageo plc (NYSE:DEO) has faced headwinds in North America and China, overshadowing sales gains in Europe and Latin America. Despite these regional challenges, the company has maintained its cash production target of GBP 3 billion for the fiscal year 2026.

Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company headquartered in London, England. Founded in 1997, the company has grown into one of the world’s largest producers of spirits and beer.

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